São Paulo, Number 1 State in Brazil

1. São Paulo,Number 1 State in Brazil Luciano Almeida President April 8, 2014

2. Investe São Paulo

3. Mission To be the gateway to new investments or expansion of existing businesses, generating innovation, employment and income, in addition to the continuous improvement of the competitive environment and of the image of the State of São Paulo

4. SP Areas of Activity • Business Prospection • Identification of sectors and companies with investment potential • Investment Projects • Technical support and orientation to investors: site location, taxes, infrastructure • Contact with public and private institutions aiming as investment facilitation • Institutional Activities • Reception of foreign delegations and organization of international missions • Support and guidance for municipal governments • Actions for the Promotion of Competitiveness • Labor training, Taxation, Innovation, Infrastructure and Licensing • Studying and proposing public policies Promotion of the image of the State of Sao Paulo

5. Our Customers Investments US$ 11.77 bi Direct jobs 50,468 71 announcements

6. Brazil on the World Stage and São Paulo Highlights

7. Brazil, the 7th economy of the planet GDP - US$ billions 4th Germany 3,366 2,433 9th Russia 6th UK 1,953 11th Canada 1,770 1,980 2,580 5,984 15,653 8th Italy 5th France 8,250 3rd Japan 10th India 1st USA 1,946 2nd China 2,245 7th Brazil 12thAustralia 1,493 Source: IMF - year 2012

8. Brazil and São Paulo Comparison São Paulo’s Share Territory 8,515,000 Km² 248,000 Km² 3% Population 193.9 million 41.9 million 22% GDP nominal US$ 2,475 billion US$ 750 billion 33% GDP per capita US$ 11,611 US$ 17,908 50% larger Source: IBGE, Banco Central e SEADE Exchange Rate: US$ 1 = R$ 1.95

9. São Paulo Highlights • The territory has the same size as the UK’s • 42 million inhabitants - population equivalent to Argentina’s and Canada’s • GDP of US$ 700 billion - equivalent to countries such as Indonesia, the Netherlands and Turkey • World´s number one producer of sugar, sugarcane ethanol and orange juice. • 3rd largest economy in Latin America • 3rd largest aircraft manufacturer in the world • 15th automotive producer in the world • Latin-American headquarters of the main multinational corporations • 75% of fairs and events in Brazil • 55% of the energy matrix is renewable

10. Foreign Trade and Investment in Brazil

11. Mercosur Brazil is a founding member of Mercosur, a free trade area and a customs union which is progressivelyconsolidating. Member states are Argentina, Brazil, Paraguay, Uruguay andVenezuela. In 2012, Mercosurhad a combined GDPwhich accounted for almost 80% of South America’s total. Mercosuris the world’s third-largest free trade area,after the European Union (EU) and the North American Free Trade Agreement (NAFTA). In December 2012, Boliviasigned an accession treaty to join Mercosur. Source: Investment Guide to Brazil 2014

12. Free Trade Agreements Mercosurcurrently has free trade agreements with Bolivia, Chile, Colombia, Ecuador, Peru (associate members) and Israel. Free trade agreements have been signed with Egypt and the State of Palestine and are pendingratification. Mercosur is currently negotiating a free trade agreement with the European Union(EU), which, if successful, would create one of the world’s largest free trade areas. Source: Investment Guide to Brazil 2014

13. Tariff Preferences Brazilis also a memberof the Latin American Integration Association (ALADI), which aims at establishing a regional free trade area. At present, ALADI members benefit from tariff preferences in specific sectors. Brazilcurrently has preferential trade agreements with Cuba, Guyana, Mexico andIndia. The preferential trade agreement with the Southern African Customs Union – SACU is pending ratification. Source: Investment Guide to Brazil 2014; Ministry of Development, Industry and Foreign Trade website

14. Brazil's Foreign Trade (sum of imports and exports) Source: Ministry of Development, Industry and Foreign Trade

15. Brazil's Trading Partners Asia Africa Latin America Middle East European Union Other partners United States Source: Ministry of Development, Industry and Foreign Trade (1) The Latin American and the Caribbean region includes Mercosur.

16. Foreign Direct Investment into Brazil US$ billions Source: Brazilian Central Bank

17. FDI flows over the past 3 years Source: UNCTAD

18. Investment Opportunities

19. São Paulo PPPs Program The most diverse program Including areas like: Public transport, Logistics, Health, Housing experienced program The first PPP to be implemented in Brazil – Line 4 yellow of subway innovative program The first MIP law of Brazil Investment plan of more thanUS$ 20 billion

20. Successful partnership Line 4 – Yellow (subway) Type:Public with sponsored concession Deadline: 30 years Construction Investment: US$ 2,8 billion. PPP Investment: US$ 500 million Actual State: 6 operational stations Awarded as the best PPP in Latin America and the Caribbean - 2013 (by IFC - member of the World Bank Group) Listed in the Infrastructure 100: World Cities Edition – a KPMG report

21. PPP projects Housing Construction Investment: US$ 2 billion Public Mobility 4 Projects: US$ 15.8 billon Infrastructure 2 projects: US$ 2 billion Health Care and Medicine Logistics 2 Projects: US$ 406 million

22. Thank You! Luciano Almeida President Telephone: + 55 11 3218 6060 E-mail: investesp@investesp.org.br www.investe.sp.gov.br